10 Million Micro Businesses Will Be Increased
Rancakmedia.com – The Ministry of Cooperatives and Small and Medium Enterprises (SMEs) is targeting to transform more than 10 million micro businesses into legal entities by 2024.
Meanwhile, as one of the seven ministries' directions in 2024, there are 3,500 technologies born and information-based starts, the construction of 500 new cooperatives and an increase in the level of entrepreneurship to 4%.
Minister of Cooperatives and SMEs Teten Masduki explained, his faction would try to increase the contribution of MSMEs to gross domestic product (GDP) to 65%, increase the contribution of cooperatives to GDP to 5.5% and increase the contribution of MSME export contributors to 17.%.
"Efforts to gain direction will not work without arrangements, cooperation and collaboration between the center and the regions," Teten said in a press release received by journalists, Thursday (8/4).
Apart from that, Teten has decided on four ideas for transforming the Ministry of Cooperatives and Small and Medium Enterprises, namely converting informal sector companies to official companies, converting to supply chains, digital converting, and modernizing cooperatives.
"Hopefully this productive collaboration will make a positive contribution to the economy," said Teten. The current national entrepreneurship rate is only 3,47% and is below that of several ASEAN countries such as Singapore (8,76%), Thailand (4,26%) and Malaysia (4,74%).
The number of UMKM residents is around 65,465,497 units, but their share in the national GDP is 60,51%. Of that number, 98.7% were micro businesses and the share of MSMEs in bank loans only reached 19.97%. Besides that, only 14,37% of MSME contributors to exports, lower than other countries, namely Singapore with 41%, Malaysia with 18%, Thailand with 29%, Japan with 25%, and China with 60%.
The number of active cooperatives is currently 127,124 units, but only contributes to the GDP of 5.1%. Cooperatives that were supposed to be the backbone of the economy were ultimately not successful because they had not yet become the people's option of economic institutions.
"Remember the role and role of KUMKM in the national economy, therefore it is necessary to increase work integration, harmony and collaboration between ministries or agencies with the person in charge of cooperatives and MSMEs throughout Indonesia to drive development and further promote the development of cooperatives and MSMEs. , “Teten said.
At that time, the Secretary of the Ministry of Cooperatives and Small and Medium Enterprises, Arif Rahman Hakim said, his faction would be responsible for implementing and planning the 2021 and 2022 programs following the functioning of Law Number 11 of 2020 regarding Job Creation and Government Provisions Number 7 of 2021 being strengthened in about facilitation, protection and strengthening of cooperatives and MSMEs.
Therefore, the Ministry of Cooperatives and Small and Medium Enterprises is conducting a pilot program or activity in 2021 and will continue the focus activities in 2022 on behalf of Government Regulation Number 7 of 2021.
This activity includes cooperative costs, mentoring and accompanying small businesses in terms of granting company licenses and legal advice.
Besides that, the use of public infrastructure in the amount of 30% for business improvement and promotion of MSMEs, implementation regulations for the provision of public service goods in the number of 40% for MSMEs, and the implementation of a single MSME database, "he said. say.
How is the Current Development of MSMEs?
Currently, the development of MSMEs is recorded in more than 65 million MSMEs throughout Indonesia. In 2016, there were 61.7 million MSMEs in Indonesia, with the number continuing to increase until 2021, with the number of MSMEs reaching 64.2 million.
How the Government Encourages the Small Micro Business Sector
The Government's efforts to advance MSMEs include details of the UMKM PEN program, namely: Interest/Margin Remuneration, Guarantee Expenditures (IJP), Placement of Government Funds in Banks, Guarantee for MSME Credit Limit Losses, Final Income Display for government-owned MSMEs, Investment financing.
Does Micro Business Affect the Economy?
MSMEs are the main pillar of the Indonesian economy. Based on data from the Ministry of Cooperatives and SMEs, the number of MSMEs currently reaches 64.2 million with a contribution to GDP of 61.07% or a value of 8,573.89 trillion rupiahs.
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